Consultant Work Contract For 1099 In Minnesota
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You must send us any Form 1099 information reporting Minnesota withholding by January 31 each year. This applies even if you participate in the Federal/State Combined program. If you have a total of more than 10 forms (W-2s plus 1099s), you must electronically submit the information to us.
Option 1 – Default Tax Withholding Minnesota State - 6.25% (MN residents only. If you are a non-Minnesota resident, contact your state for tax withholding requirements.).
The total Minnesota self employment tax is 15.3%, divided into a Social Security amount of 12.4% and a Medicare amount of 2.9%.
It is illegal for an employer to classify a worker as an independent contractor if the worker qualifies as an employee. An employer also cannot make a worker an independent contractor by having workers to sign a contract saying that they are independent contractors, when in reality they are employees.
Independent contractors receive a Form 1099 for taxes while employees receive a Form W-2.
Minnesota has a graduated state individual income tax, with rates ranging from 5.35 percent to 9.85 percent. Minnesota has a 9.8 percent corporate income tax rate. Minnesota also has a 6.875 percent state sales tax rate and an average combined state and local sales tax rate of 8.04 percent.